Request for information
A request for information (RFI) is a formal document soliciting responses from potential suppliers (sellers) of a service or product. The RFI is usually intended to gather information about the suppliers capabilities or suggested solutions. Based on the responses to the RFI a request for quote (RFQ), request for proposal (RFP), or request for tender (RFT, less common) may be issued as a follow-up. Sometimes the RFI is also used to qualify the suppliers who will be invited to respond to these later documents. Some organizations use the terms RFI, RFQ, and RFP with slightly different intents, overlaps, and uses. Why issue or respond to an RFI? An RFI is one form of market research. It is especially useful when the issuing organization wants to learn more about what is available, to get an idea of the price drivers and price range as well as the options available. Sometimes research or industry organizations may respond to an RFI as well as prospective vendors. But most commonly the respondents are prospective suppliers. Suppliers who respond to RFIs can use it as a way to advertise their capabilities, show their strengths, and perhaps influence the characteristics that the buyer looks for in the purchase decision. Suppliers can also use the dialog that is often included as part of an RFI as a way to learn what is important to potential buyers. A research or industry organization may respond as a way to get funds for the research or a way to smooth the way for the adoption of a new type of technology or method. RFI contents and process An RFI usually describes the purchasing organization, reason for the purchase, the high-level requirements, the RFI process, and the timeframe. It may also have disclaimers regarding the fact that responding to the RFI does not guarantee a purchase or what happens to any information shared during the RFI process. There may be a non-disclosure agreement required since the buyer may be sharing information about their future strategy. The RFI process often includes a time period for the respondents to ask questions. Then the questions are published with answers. After that the respondents send in a formal response. Demonstrations of capabilities or systems may also be part of the response. After receiving the responses the organization that issued the RFI will decide the next steps. Possibilities include * a decision not to make a purchase at this time * a change in direction for the purchase * clarification of the requirements and moving forward with the purchase ** negotiating directly with one of the respondents that was clearly the best for their needs ** issuing an RFQ or RFP base on what they have now learned about the possibilities ** limiting or broadening the potential suppliers based on what they have learned A well run RFI can make the purchase implications clearer and the criteria of selection better than going straight to a purchase or RFP. Related: procurement documents, seller proposals External links * the construction productivity blog on Construction RFI: Here’s Everything You Need to Know * object management group: Optional RFI Stage * smartsheet has some basics about RFI and some templates: Free Request for Information Templates by Kate Eby on Jul 24, 2017. Category:Documents Category:Procurement